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I'm asking this in good faith. Does the success of a $15/hr minimum wage in specific cities indicate that it would be successful across the US? In other words,
by heartbreak 7y ago
I'm asking this in good faith. Does the success of a $15/hr minimum wage in specific cities indicate that it would be successful across the US?
In other words, A) does the local cost of living matter to its success? and B) does the limited rollout keep inflation in check?
Is YC still studying UBE in an attempt to answer questions like these?
- Tade0 7y agoB) does the limited rollout keep inflation in check Even a full scale rollout probably would as well - minimum wage workers are not only a small part of the overall workforce but also the ones that obviously make the less, so they can't possibly increase total consumption significantly.
- ericd 7y agoI think what keeps inflation in check is that we no longer manufacture most things locally, and things which are made locally are heavily automated, so wages aren’t the primary driver of their costs. So incomes are largely decoupled from the prices of consumer goods. Housing and other assets, on the other hand, have been exploding.
- notus 7y agoYes the local cost of living matters, however it also depends on how you define success. If the minimum wage constitutes an overall increase in wages then you could consider that successful by some metrics. However if success is defined by people not living paycheck to paycheck and feeling financially secure then it would be unsuccessful...even at 15 an hour. We're setting such a low bar for ourselves still at 15 an hour IMO. People will still live paycheck to paycheck at that wage.
- swsieber 7y agoIf people live paycheck to paycheck despite wage increases, doesn't that indicate that wages aren't the root cause?